1. 

   Patrova01 Active Member

   hi,
   
   may someone please assist me in understanding the calculation for question 20 (ii)
   
   Thanks

    

   Patrova01, Sep 10, 2017

   #1
2. 

   Simon James ActEd Tutor Staff Member

   Hi. You need to work out the yield on the debt.
   
   The debt is valued at 220. The cashflows are 5% of 250 for 5 years followed by the redemption of 250.
   
   Solve for the IRR!

    

   Simon James, Sep 10, 2017

   #2
3. 

   Patrova01 Active Member

   thanks

    

   Patrova01, Sep 16, 2017

   #3

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